RETAIL CHAIN SPECIALIZED ERP – SAMSUNG TESCO HOMEPLUS

RETAIL CHAIN SPECIALIZED ERP – SAMSUNG TESCO HOMEPLUS

CONTENTS

1. Samsung Tesco1. Samsung Tesco

2. Background2. Background

3. ERP construction3. ERP construction

4. Retail chain specialized ERP 4. Retail chain specialized ERP

5. After construction5. After construction

SAMSUNG-TESCO

Samsung-TESCO

Korean no.2 Retail chain. Joint venture of Samsung C&T and TESCO

Founded on 99.5.1. Sales about $7 billon (2008)

Sales 47%Profit 175%

SAMSUNG-TESCOWon 3 Customer satisfaction

surveysNCSI(National Customer Satisfaction Index) -2002, 2004 KCSI(Korea Customer Satisfaction Index) -2005

KS-SQI(Korean Standard-Service Quality Index) -3 times

1st Samsung Electronics 14 th Homeplus

2nd POSCO 15 th Mirae asset

3 th Yuhan kimberly 16 th Shinhan bank

5 th LG Electronics 17 th Doosan heavy industries and construction co.

7 th Hyundai motor 18 th Kookmin bank

8 th SK Telecom 19 th KT

10 th Samsung C&T 20 th Samsung life

11 th NHN 21 th KTF

Most admired company

SAMSUNG-TESCO

Samsung-TESCO

55 Hyper Markets(Standard&Compact)

42 Express 12300 employees

CONTENTS






BACKGROUND

Retail Market is getting filled. It is getting harder to survive in this Red-Ocean.It is needed to increase own market share not only for sales, but survival.

M&A of Major Retail companies

Global competitors invasion

Needs of IT

strategies

Effective Resource

management

Customer management

Analysis& prediction

of global trends

Supply system’s efficiency

improvement.

Strategies for Competitive advantage

BACKGROUND OF ERP

BACKGROUND

Needs of flexible task process and IT Environment to achieve position of market dominance of Korea. Competitors already started to analysis the

customers information and use market segmentation strategy with that information.

Because of it’s rapid growth, pre-existing management system couldn’t supports it’s huge number of transactions.

For IT strategies, Standard ERP

Applications are Needed at first.For IT strategies, Standard ERP

Applications are Needed at first.

CONTENTS






RANGE OF ERP CONSTRUCTION

OrderingOrdering PurchasePurchase loanloan SellingSelling StockStock

DemandForecasting

DemandForecasting AccountingAccounting

EIP DW Exhibition ReportReport

Electronic payment

Web-EDI-E-Tax-information

DistributionAccountin

gPOS Credit card

Gift certificate

Balance Management

I/F

I/F

I/F

I/F

Pre-existing System

New ERP System

Interface

New ERP System

Master ( Product, supplier, product classification system, organization, cost, coupons, subsidies, etc) Master ( Product, supplier, product classification system, organization, cost, coupons, subsidies, etc)

I/F

I/F

I/F

I/F

RDF

ReSA

In tactic

RDM Oracle

RMS

• RMS : Retek Merchandising System• RDF : Retek Demand Forecasting• ReSA : Retek Sales Audit• RDM : Retek Distribution Management

Group CRP Korean CRP ` `User Training

1st Implementation

2ndImplementation

3rd

Process Changes (Change Management)

7 Oct. ‘02 17 Feb 03.

11 April 1 Jan ‘04 1 Jul

Aug. 2000Dec. 2000Aug. 2001Jan. 2002

Jan-Aug.Mar-May

Apr-MayOct-Jang.2003 – Feb.2003Feb.-AprMay0Aug.Sep.-Nov.Dec.-Feb. 2004

Raised the need for the New MD systemAnnounced a global pilot projectDocumented the requirements for the new systemOrganized Samsung Tesco BPI T/F(Business Process Innovation Taskforce Team) Made the ‘As-Is Business Scenario’Quick-wins project: code management, inventory accuracy improvement stores, MIS reportsSelected Package vendor & intergrator : Retek and IBM Strated Group CRPGroup CRODesigned Group Manual ProcessUnit test & Interface testIntegration test, UAT, Report test, End User TrainingCut Over & Go-Live

HISTORY OF ERP CONSTRUCTION

CONTENTS






Partner2

Partner1

Store1 Store2 Store3

Product

Store /Product / Partner Flexible organization classification System

Company

Country

Partner

Category

Region

Branch

6 Classification

Free Grouping

Easy integration

system

Efficient product management Efficient master input

Top Item

Sub Item

Shirts

Item code ResisterEasy change of Classification

Supplier Logistics Buyers Code team

Enter Basic information

Simplify the approval

procedure

Powerful master

management

RETAIL CHAIN SPECIALIZED ERP – FEATURE 1

Multi Unit Discount

Mix & Match

Simple Discount

800 Won

500 Won

20% Discoun

t

Purchase of two

5% Discount

Purchase of five

14% Discount

1 + 1 Event 2 + 1 Event

Multiple quantity,

Related Promotion, Mix & Match

-Various promotion Feature -

Can make a variety of events

Take advantage of the opportunity to

improve sales



CONTENTS






AFTER CONSTRUCTION - EARLY STABILIZATION

Unsolved issue graph

Issue

11 12 1 2 PeriodGo-live

Help desk

12 1 2 3 PeriodGo-live

Using help desk

• Continuous effort for resolving issues• Help desk had done their job great• Stabilization in early time

Construction ERP is huge project How we done great ?

Integration of issues that occurs from each stepsCheckup the schedule through dashboards and meetings

Management

Issue & schedule

Function test, interface test, modification test, report test, parallel testBefore the test, manager must confirm the list of non-testedIn each test, define scenario and schedule

Systematic &

repeating test

Search and modifying a error of data and program Adjustment cut over schedule Making single communication channel in each managers

Safety data

translation

1st education 2nd education 3rd education for end-user 4th final education additional education after the system Making good quality education manual

Managing education method

FOR SUCCESSFUL CONSTRUCTION

AFTER CONSTRUCTION – SALES PROMOTION

Increasing competition power through sales promotion

“Increase”

-Revenue-Customer Loyalty-Customer Frequency-Competitiveness

•e- catalog system

•Product management system is effective

•Enter information directly to the inventory management system

AFTER CONSTRUCTION – MEDIA

BEYOND E-MART

MIS 강의 듣고

A+ 받자

수업

학생

Documents

RETAIL CHAIN SPECIALIZED ERP – SAMSUNG TESCO HOMEPLUS